Jack Black's Brewing Co.: Strategic growth from recipe to market to tap

Abstract

Subject area of the teaching case The case can be used in the subject areas of marketing, strategy, business model innovation, and general business growth, particularly those with a focus on emerging markets. Student level This case can be used in postgraduate and post-experience business courses such as Master's degrees in Business Administration, postgraduate diplomas, executive education, or specialist Master's degrees. Brief overview of the teaching case This case looks at craft beer business Jack Black's Brewing Co. started in 2006 in Cape Town. After humble beginnings, protagonist McCulloch grew the company rapidly with a focus on the strategic “tap” market across the country. After systematically working with a number of contract brewers the company finally invested in their own, industrial-scale brewery and brewpub. The dilemma facing McCulloch and Jack Black's Brewing Co. is one of cash flow. In order to generate cash flow, the management team needs to drive sales so that the brewery operates at full capacity. While it strives to attain this goal, there are considerable cash flow and liquidity challenges. Expected learning outcomes The development of an understanding of an effective marketing mix to position a niche and young brand. An understanding of the concept “co-opetition” and how it works in a growing market. The ability to assess the various growth stages of a business.